Housing Market Predictions for Next 5 Years (2024-2028)
Wondering what the next five years might bring for the U.S. housing market? The housing market is a complex and ever-changing landscape, making precise predictions challenging. However, based on current trends and expert opinions, we can anticipate a few key developments. The housing market is expected to remain strong over the next five years, but factors such as rising interest rates and an increasing supply of homes could influence its trajectory.
According to Norada, while these trends offer valuable insights into the future of the housing market, there are additional factors that warrant consideration. Let’s get into more detail about these trends and make predictions about how they will affect the housing market. The housing market is a crucial component of the US economy, and predicting its future trends and fluctuations can be difficult, especially as external factors can influence the market.
Rising interest rates will increase the cost of mortgages for new buyers, but prices are unlikely to fall as they did during the 2008 market crash, as lending standards have become more robust. The market was driven higher during the pandemic by record low borrowing rates, encouraging purchases by first-time buyers, and a lack of supply because of underbuilding.
Analysts and economists have different opinions on whether prices will be flat or collapse in the next five years. However, they agree that the housing market will experience a slowdown in the coming years until mortgage rates decline. However, prices are unlikely to fall as they did during the 2008 market crash, as lending standards have become more robust.